Archive · 25 Sep 2026
Dixon Technologies May Reach 38-40 Million Smartphones by FY27
Dixon Technologies makes smartphones and other electronic products.
It may produce 38-40 million smartphones in the financial year ending in 2027.
Vivo is expected to start adding production orders in the third quarter of FY27 and increase them in the fourth quarter.
Motorola and Transsion exports are also expected to help the company reach its target.
Dixon is working on making display and camera parts itself.
These new capabilities could help the company earn better margins in FY28 and FY29.
The company has also started making products for HP, Acer, Lenovo and Asus.
However, higher memory costs could keep smartphone prices high and limit profit margins in the near term.
Dixon Technologies could end FY27 with 38-40 million smartphone volumes as Vivo production ramps up.
Vivo is expected to begin contributing in Q3FY27, with a larger ramp-up projected for Q4FY27.
Display and camera module sub-assembly could expand margins by 50-60 basis points in FY28E and 100-120 basis points in FY29E.
Motorola and Transsion exports are expected to support FY27 smartphone targets, while exports could represent 10-15 million units by FY29.
Dixon has begun manufacturing for HP, Acer, Lenovo and Asus, with Inventec joint-venture production expected to start soon.
- Who
- Dixon Technologies, with expected contributions from Vivo, Motorola and Transsion.
- What
- Dixon is projected to reach 38-40 million smartphone volumes in FY27 while expanding into IT hardware, telecom equipment and component manufacturing.
- When
- Vivo production is expected to begin in Q3FY27 and ramp up in Q4FY27; display trials are planned for Q4FY27.
- Where
- The article refers to domestic and global markets but does not specify a particular location for the reported production developments.
- Why
- Higher Vivo volumes, exports, IT hardware growth and backward integration are expected to support future volumes and margins.
- FY27 smartphone volume
- Estimated at 38-40 million units.
- Vivo ramp-up
- Expected to begin in Q3FY27 and accelerate in Q4FY27.
- Margin outlook
- Display and camera sub-assembly are expected to add 50-60 basis points in FY28E and 100-120 basis points in FY29E from current levels.
- FY29 exports
- Around 10-15 million smartphones could be export-led.
- Display investment
- Dixon plans to invest Rs 1,200 crore in display sub-assembly.
- Display capacity
- Planned capacity includes 55-60 million smartphone displays and around 2 million IT hardware displays, plus automotive displays.
- Analyst stance
- The note maintained an ADD rating with a target price of Rs 14,800, while cutting FY27E-FY29E EPS estimates by 2-4%.